U.S. Senator Bill Hagerty (R-TN) signed a letter urging the Biden administration’s Consumer Financial Protection Bureau (CFPB) to pause the effective date of the Dodd-Frank Section 1071 small business data collection rule.
The rule would compel banks to gather private information on small business owners who apply for loans.
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Tennessee U.S. Congressman Andy Ogles (R-TN-05) led a group of House Financial Services Committee Republicans in sending a letter to the Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra expressing opposition to a proposal from the bureau to establish a nonbank registry.
It was announced last December that the CFPB proposed a rule to identify repeat financial law violators by creating a database of enforcement actions against certain nonbank-covered entities. According to the proposed rule, certain nonbank entities must register with the bureau and provide regular updates on their covered orders.
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A new data-reporting rule issued by the Consumer Financial Protection Bureau (CFPB) has Pennsylvania’s community bankers worried about its implications for them and the businesses they serve.
The regulation requires lenders making at least 100 small business loans annually to gather data regarding the entities’ applications, including credit prices, geographic figures, lending determinations and demographic information. The banks must then publish the data they collect. Entities meeting the definition of “small business” are those with gross revenues under $5 million in their last fiscal year.
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Federal regulators on Tuesday ordered Wells Fargo Bank to pay a $1.7 billion civil penalty and more than $2 billion in compensation to customers for what they say was “illegal activity affecting over 16 million consumer accounts.”
The Consumer Financial Protection Bureau said Wells Fargo “repeatedly misapplied loan payments, wrongfully foreclosed on homes and illegally repossessed vehicles, incorrectly assessed fees and interest, charged surprise overdraft fees,” among other things.
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Republican senators claimed in a Monday letter to Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra that he has returned the federal agency to its “lawless and unaccountable” Obama-era “roots.”
Led by Pennsylvania Sen. Pat Toomey, the 12 senators are taking aim at Chopra’s alleged “abuses of power” that are a “serious concern.” Chopra should “reverse course” and ensure the CFPB “stay[s] within the boundaries of law,” the senators wrote.
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President-elect Joe Biden will reportedly nominate Rohit Chopra, an ally of Massachusetts Sen. Elizabeth Warren, to lead the Consumer Financial Protection Bureau.
Chopra is a member of the Federal Trade Commission (FTC), and if confirmed by the Senate would take over an agency that he helped create alongside Warren approximately a decade ago. Chopra’s selection was first reported by Politico, which cited four individuals with knowledge of the decision.
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